Major buying interest in ING Vysya Bank boosts the stock to a new 52-week high on BSE

MUMBAI: Major buying interest in ING Vysya Bank sent the stock to a new 52-week high of Rs 479.5 on the Bombay Stock Exchange, Friday. The stock has gained 10% in the past month and trades at a price to book value (P/B) multiple of 1.7 times - at a slight discount to its peers as measured by the BSE Bankex Index which trades at a P/B of 1.89 times.

For the twelfth consecutive quarter the bank reported a rise in profit, this time to the tune of 30.2% to Rs 150.2 crores compared to Rs. 115.4 crores in the corresponding quarter of the previous year.

Both advances and deposits increased faster than the industry average. Total deposits grew 18% to Rs 36169crores whereas current and savings deposits grew by 19% to Rs. 11851 crores. Its CASA ratio, or ratio of current and saving deposits to total deposits, was 32.8% compared with 32.6% in the year ago period. Advances grew by 21% to Rs 30581 crores.

Net interest income, which is the difference between interest earned and interest paid, increased 21.5% to Rs. 368.8 crores. Its net interest margin, or the yield on advances over cost of deposits, grew from 3.35% to 3.45% as bank managed in increase its yield on advances faster than cost of deposits.

The bank also managed to maintain its asset quality. Its non-performing assets as a percentage of total advances (net) remained at 0.13.

According to Bloomberg data, 24 out of the 27 analysts that have reviewed the stock recommend a buy with a target price of Rs 509. The stock closed at Rs 471 today.